Question: warren corp is considering a project that would require an investment of 344000 and would last 8 years. incremental cash revenues and expenses generated by

warren corp is considering a project that would require an investment of 344000 and would last 8 years. incremental cash revenues and expenses generated by the project are as follows

sales rev: 227000

less : variable costs : 52000

controbution margin : 175000

less fixed cosfs

salaries 27000

rents 41000

operating income : 107000

the salvage calue of the projects assets at the end of its life is 23000, and depreciation expense is 20000, what is the projects payback period?

a) 3.01

b) 5.14

c) 3.21

d. 4.80

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